Commercial director Kevin Grace (pictured) is reportedly the fifth Tesco executive to be suspended from duty while Deloitte carries out an independent review into its £250 million overstatement of profits

Beleaguered supermarket Tesco has suspended another senior executive as part of the investigation into its recent £250 million overstatement of profits.

Commercial director Kevin Grace is reportedly the fifth executive to be suspended from duty while Deloitte carries out an independent review into the accounting black hole.

Four senior executives, including UK managing director Chris Bush, were asked to step aside two weeks ago when Tesco revealed that its most recent profits warning to the City in August was much too optimistic.

Boss: New chief executive Dave Lewis said that the suspensions would allow the company to carry out a 'full and frank' investigation and was not disciplinary or an indication of guilt

The error is said to relate to how Tesco reports the revenue it receives from suppliers in return for an extra drive to promote their products.

Last month, Tesco told the City that profits for the six months to August 23 were about £1.1bn, however this was not correct and the real figure was some £250million lower.

Tesco launched its own inquiry involving Deloitte alongside Freshfields, the group's external legal advisers, however the FCA decided the situation is so serious that it needs to investigate.

If it finds evidence of wrong-doing, penalties range from public censure through to large fines for the company and individuals.

In a worst case scenario, it is possible executives might be guilty of market abuse which could, in theory, lead to a prosecution for criminal misconduct and a jail sentence.

Tesco has insisted it would 'continue to co-operate fully with the FCA and other relevant authorities considering this matter'.

Last week it emerged that more than 4,000 head office and corporate staff were being sent to work one day a fortnight on the shop floor in the run-up to Christmas, in an initiative by Mr Lewis to try to reconnect those running the group with customers.

And the retailer beefed up its board this week by appointing Richard Cousins, chief executive of catering giant Compass, and Mikael Ohlsson, former boss of Ikea, as non-executive directors.

HOW THE PRESSURE HAS PILED ON TESCO OVER THE PAST THREE YEARS

February 2011

Sir Terry Leahy steps down as chief executive on his 55th birthday after 14 years in charge, overseeing a leap in pre-tax profits from £750 million in 1997 to £3.4 billion in April 2010.

His record includes the launch of Tesco.com and premium range Tesco Finest and its expansion into America with the Fresh & Easy chain. The market share of the group stands at 30.5 per cent.

January 2012

Less than a year into Philip Clarke's tenure, Tesco shocks the market with its first profit warning in almost 20 years after poor Christmas trading. Shares plunge by as much as 15 per cent, or more than £4 billion.

Former chief executive Philip Clarke left the chain earlier this year

Tesco, in common with the country's three other leading grocers - Wal-Mart's Asda, Sainsbury's and Morrisons - finds itself squeezed by discounters Aldi and Lidl and upmarket grocers Waitrose and Marks & Spencer.

April 2012

Tesco unveils a £1 billion UK revival plan, which includes upgrading stores, the recruitment of more staff and better prices and value. The initiative follows complaints that its 2,800 stores are cold and industrial with poor levels of service.

April 2013

The retailer reports its first fall in annual profits in 19 years, with post-tax profit tumbling almost 96 per cent to £120 million from a year earlier.

The figure is hit by a £1.2 billion charge on the retailer's US Fresh & Easy chain of around 200 stores as it confirms it will leave the country.

The firm also suffers a £804 million write-down in the UK on land for more than 100 major stores, bought at the height of the property boom, which will no longer be developed.

February 2014

The supermarket promises to spend an additional £200 million on lower prices for basic products, such as carrots, tomatoes, onions, peppers and cucumbers.

It will also rein in annual capital spending to no more than £2.5 billion for at least the next three years as a result of the dramatic reduction in store expansion - nearly half the £4.7 billion spent in 2008/09.

April 2014

Mr Clarke brushes off speculation about his future despite little sign that his £1 billion plan to turn around the retail juggernaut is bearing fruit.

Profits fall 6.9 per cent to £3.05 billion for the year to February 22 while fourth-quarter like-for-like sales slump by 3 per cent as its UK market share falls to 28.6 per cent in the 12 weeks to March 31, from 29.7 per cent in the same period a year earlier.

Stepped down: Less than a year into the tenure of Philip Clarke (pictured), Tesco shocked the market with its first profit warning in almost 20 years

Stepped down: Less than a year into the tenure of Philip Clarke (pictured), Tesco shocked the market with its first profit warning in almost 20 years

June 2014

Till-roll figures from Kantar Worldpanel show a decline in Tesco's market share to 29% in the 12 weeks to May 25, compared with 30.5 per cent a year earlier.

A day later, the chain reports a 3.7 per cent fall in like-for-like sales for the first quarter of its financial year. It is a performance that Mr Clarke admits is the worst he has seen in four decades at the supermarket chain.

At the company's annual meeting, chairman Sir Richard Broadbent asks shareholders to give management more time to complete their turnaround plans.

July 2014

Tesco announces that Mr Clarke will step down from the board on October 1 to be replaced by Unilever executive Dave Lewis.

Sales and trading profit in the first half of the year are 'somewhat below' expectations, the company adds.

August 2014

Tesco issues profit warning to tell the markets that it expects its first-half profits will be £400million less than expected. It slashes dividend payments by 75 per cent and £1billion is wiped off the company's market value. The change at the top of the supermarket is brought forward by a month in order to allow Mr Lewis to commence a review of 'every aspect' of the group's operations.

September 2014

Company launches an investigation after admitting that its previously warned of fall in takings actually over-estimated profits by as much as £250million. The error relates to timing issues on when Tesco's UK business reports the income it receives from suppliers. Supermarket then admits that it was without a finance director in the five months leading up to the accounting scandal.

Difficulties: Tesco's share price in the last year, pictured, has been steadily dropping and the company has now issued three profit warnings in as many months

Rise and fall: Tesco's half year profits for the last five years, including this autumn's revised prediction

SUSPENDED: UK MANAGING DIRECTOR CHRIS BUSH

Tesco's UK managing director Chris Bush

Since being appointed Tesco managing director last year, Chris Bush, 48, has split his time between a huge country estate in Hertfordshire and a second home in the south of France.

Mr Bush, who is believed to be on a large six-figure salary, lives with his partner Tracy Johns, 51, and their daughter Emily, 16, in a huge £2.5million mansion on a private road in a small village.

The Tesco boss, who grew up in Whitchurch, Buckinghamshire, also says he enjoys travel and has spent much of his 34-year career at the supermarket giant working abroad.

After joining the retailer in 1982, Mr Bush became a UK store director and then operations director just over a decade ago.

In 2004, he moved to Seoul, South Korea as operations director before transferring to Kuala Lumpur, Malaysia in 2006 to become chief executive for the region.

Four years later, he was made chief executive for Thailand before being brought back to the UK as managing director in January 2013.

Mr Bush has previously said that being appointed Tesco MD was 'a great honour and a privilege'. He has been suspended and did not respond to requests for comment.

SUSPENDED: UK FINANCE DIRECTOR CARL ROGBERG

Mr Rogberg started his career at Tesco as international finance director for Asia from 2006 to 2010, before a stint as finance director in Thailand.

Swedish born Mr Rogberg said he had been suspended indefinitely, but was unable to talk in detail about the investigation.

He told the Daily Mail last month: 'I'm fully supportive of the investigation – it is what it is. We will just have to let it all take its natural course.'

UK finance director Carl Rogberg

SUSPENDED: CHIEF EXECUTIVE OF TESCO FOOD SOURCING LTD MATT SIMISTER

Matt Simister, was previously best known for accusing Tesco customers of being a major cause of food waste.

Appearing at a House of Lords inquiry into the issue last December, he said Britons 'always pick the cream of the crop' – forcing the company to dump thousands of tons of misshapen or unsightly produce.

Head of group food sourcing Matt Simister

The 41-year-old became a commercial director for Tesco in 2007.

Three years later he was promoted to group food commercial director and chief executive of Tesco Food Sourcing Ltd with a brief to expand the firm's direct global sourcing from fresh produce to other commodities.

The plan was intended to boost profits by cutting out middlemen and passing on savings to customers – although it has failed to stop Tesco's share price falling as shoppers desert its stores in favour of budget chains.

Former chief executive Mr Clarke was not involved in preparing the artificially inflated accounts, but will face questions about what he knew and the management culture he fostered at the supermarket giant.

He was ousted in a boardroom coup in July, although he left with an estimated £20million payoff consisting of cash, shares and pension. The 54-year-old father of two remains on the payroll until January.

QUIT BEFORE THE SCANDAL BROKE: FORMER FINANCE CHIEF LAURIE MCILWEE

Tesco's finance chief Laurie McIlwee, 52, quit the supermarket giant with a £1million payoff a week before the accounting scandal that came to light.

He resigned from his £886,000-a-year chief financial officer position in April after reportedly clashing with then-chief executive Philip Clarke amid falling profits.

Former finance chief Laurie McIlwee

But he arranged to stay for another six months on full salary, also negotiating a potential bonus of up to £886,000 plus a 'golden goodbye' of £970,800 when he finally stepped down.

Mr McIlwee left Tesco just days before the discovery of the massive accounting problem dating from his time in charge of financial matters.

This has left the supermarket giant with no finance director until his replacement Alan Stewart joins from Marks and Spencer in December.

Company accounts show Mr McIlwee earned £1.5million last year, including a salary of £800,000, benefits of £119,000 and £537,000 from his pension.

Mr McIlwee joined Tesco in 2000 from PepsiCo, although some doubted his credentials because he had no background in running supermarkets, and was promoted to the board in 2009.